This also might be the time to consider seeking out more investors or applying for a larger line of credit or another loan so you have the capital you need to make your business bigger and better. At the same time, you don't want to seek out more financing than you need. This is where good planning and forecasting comes in.
Employ good forecasting tools and methods to determine whether asking for more capital is a good idea at this point in your growth. Several factors should be considered as you determine whether or not to increase your credit, take out more loans, or bring on more investors:
- Based on historical sales and performance, how do you predict your business will grow over the next few years?
- Where do you stand in terms of your business credit, outstanding debts, and cash flow right now?
- Is your industry growing, holding steady, or declining?
- What do you need specifically to grow? How much money do you need to finance those needs? Do you have enough revenue coming in and capital to meet them? If not, how much more do you need and what are your options for acquiring it?
Above all, can you plan ahead for growth and determine how much money you need to get through this transitional stage in your business? Or, do you need more money to shore up a failing product or fix an emergency situation? Be honest about the state of your business and your reasons for seeking more capital so you can make the most clearheaded financial and business decisions.